- Overview: Tanzania
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global Employer of Record in Tanzania
Global Employment Solutions: How Can Help You Expand to Tanzania
As the global employer of record, our experience and expertise can help you get started quickly and compliantly in Tanzania. Businesses expanding globally often face challenges when compliantly employing a workforce in foreign countries. In most cases, legal compliance requires establishing a legal in-country business entity, a complex, costly, and time-consuming process that many employers are not ready to undertake.
To help your organization legally onboard and payroll a workforce in Tanzania, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Tanzania to conduct business there.
9 Global Employment Challenges to Consider
If you’re thinking about expanding your operations to a global level, you’ll want to consider all the details that go into that decision. That includes everything from choosing the most cost-effective country and the right entity type to preparing for the challenges of doing business across borders. Choosing a location that works with your overall strategy and offers lower taxes could be one way to help improve profitability.
As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges:
- Every country in the world has its own set of unique laws for businesses.
- The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome.
- Global HR Compliance challenges
- Need to understand and keep track of ever-evolving local labor laws and tax regulations across multiple jurisdictions
- Need to understand the local labor market
- Need to understand local business practices pertinent to employment
- Need to adhere to the company’s global employment policies
- Need to understand local competition and benchmark against standard business practices
- Working with different languages, time zones, customs, and cultures.
No matter which countries you expand to or what type of operation you open, there are some significant issues you will always have to deal with.
Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.
What Is a Global Employer of Record?
A Global Employer of Record is a third-party expert in global employment contracted by a client company to provide fully compliant international employment services. This means that the Employer of Record assumes all the core responsibilities of an employer as specified under the applicable laws in a specific country or a set of operations. An Employer of Record is generally responsible for payroll and benefits administration, ensuring that all necessary tax withholding or deductions are made, and meeting other compliance obligations of employers in a particular country of operations. Employer of Record solution is usually more cost-effective and compliant than setting up a local legal entity or subsidiary overseas.
What Services Does a Global Employer of Record (EOR) Provide?
The Employer of Record usually handles human resources-related issues regarding the global workforce. These issues include but are not limited to:
- Payroll and benefits management;
- Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
- Handling employment contracts:
- Background, education, and other checks;
- Onboarding and termination processes, as well as employee’s compensation;
- Arranging visas and work permits for employees;
- Ensuring the working process is organized under local labor laws;
- Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
- Process maps, employment guides, and other documentation.
How Does a Global Employer of Record Work?
If you’re looking to do business in a foreign country, it’s essential to make sure you’re compliant with local payroll laws. This is where an Employer of Record (EOR) can help. An Employer of Record (EOR) can act on your behalf to manage local employee-related matters such as payroll, tax deductions, and onboarding of new hires.
An EOR can provide a registered entity for running a local, compliant payroll, managing payroll taxes, benefits, compensations, deductions, social insurance, and employee information. An Employer of Record can guide you on the host country’s required notice periods, termination rules, and severance pays, saving thousands of dollars in lawsuits while freeing up HR from repetitive tasks.
With a global EOR partner, you can ensure that your business operates smoothly and legally in your new country of choice.
When You Should Use an Employer of Record
Organizations looking to expand internationally often face many challenges. One of the biggest challenges is finding a way to do so quickly and efficiently without sacrificing quality. In that case, a global EOR provider can be beneficial. A global Employer of Record provider specialises in helping organisations with their international expansion efforts. They have the knowledge and expertise necessary to help your organisation grow quickly and effectively. Here are some common situations where organisations like yours can turn to an EOR provider for assistance.
1. Using Global EORs to Explore and Evaluate International Markets
EORs are a great way to test the readiness of an international market for your products or services. Hiring workers in target countries allow you to get a feel for the market without committing time and resources to set up a local entity. This is a great way to gauge interest and potential demand before making a significant investment.
2. Avoid Independent Contractor Non-compliance and Misclassification Issues
If you plan to grow your business by hiring international contractors, you could be at risk of violating employment and tax laws. An EOR can enhance compliance by hiring contractors on your behalf and following all local in-country labour requirements.
3. Quickly Enter New Markets without Overseas Entity Set-Up with GEO
Organizations looking to expand their business into new markets may find that establishing a new entity is the best course of action. However, setting up a new entity can be lengthy and complex. With an EOR (Employer of Record), businesses can have workers operational in the new country within weeks while your organization does the work of setting up the new entity in parallel.
4. A Global EOR Can Support Your M&A Processes
When an organisation acquires a workforce in a new country, the contracted workforce will often be expected to operate in a different jurisdiction with different local laws and tax and compliance regulations. In the business world, where time and cost are critical factors, it is essential to have a reliable and experienced EOR partner to facilitate and expedite your business acquisitions.
Global EOR (Employer of Record) Services: Save Up to 75-80% of Employee Management Cost
|Average Cost & Time||Our Solution *|
|Time to Market||10+ weeks||72 hours|
|Legal Advisors Fees||$ 10 000 +||………….|
|Official Employment & Benefits||$ 20 000 +||………….|
|Incorporation & Liquidation Costs||$ 11 000 +||………….|
|Bank Account Setup||$ 2 000 +||………….|
|Maintenance costs and in-house staff to manage the foreign entity, payroll set up, and administration.||$ 25 000+||………….|
|The approximate total cost of new market entry**||$ 74 000 +||$ 15 000|
* Per one Employee
** Costs vary from country to country
Employer of Record – The Best Option for Expanding Your Business to Tanzania
1. Faster hiring a candidate in Tanzania
With the global economy shifting more and more towards technology, companies are looking for ways to keep up. One such solution is the EOR model, which allows companies to outsource work to distant locations without any overhead or bureaucracy. This is especially helpful for companies that need to fill positions quickly in multiple locations, as it eliminates the hassle of setting up local entities.
The EOR model can be an excellent solution for businesses that need to find and hire talented workers no matter where they are located. This can be especially helpful for companies with limited internal resources or infrastructure, as it eliminates the need to create an entity in each location. Additionally, the EOR engagement complies with global regulations, making it an ideal solution for businesses of all types looking for faster and compliant employment in Tanzania.
2. Test the Market with a Global EOR before Launching Business in Tanzania.
If you’re looking for a way to tap into the Tanzania ‘s market, a global EOR might be the perfect solution. A global Employer of Record is an employee engagement where one company agrees to act as an employer for another company. This allows your company to test the waters without taking on all the associated risks and costs of establishing an entity in Tanzania. If things go well, the Employer of Record can arrange for its employees to work permanently from that location. So what are you waiting for? Start exploring this promising new market today!
The benefits of a Global Employer of Record (EOR) arrangement include:
- Cost savings. There are no additional expenses associated with setting up an entity or hiring staff until you decide it’s worth the cost.
- Increased flexibility. You can move quickly if necessary without dealing with lengthy lease agreements or other administrative matters that would slow down your growth plans.
3. Employer of Record: Avoid Expensive Fees and Long-Term Commitments
The Employer of Record offers a simple, low-cost solution for companies looking to expand their operations in a foreign country.
Companies can work with a local partner in their chosen country and utilize the services of an Employer of Record (EOR). This provides an alternative to setting up an entity or subsidiary, as it allows companies to sidestep the administrative and financial burdens involved in establishing a legal entity.
The EOR (Employer of Record) will be responsible for all tax obligations and regulatory compliance requirements on behalf of your company in Tanzania. The EOR engagement also allows you to avoid additional costs associated with hiring local staff and other expenses such as office space and equipment rentals.
Partnering with an Employer of Record, you will retain complete control over your employees and business operations while benefitting from substantial cost savings and avoiding non-compliance risk.
4. Employer of Record: A Good Option To Getting Started in Tanzania
An Employer of Record is an excellent choice for those looking to start working in Tanzania immediately. Using an Employer of Record, you can get started sooner than if you were waiting for your entity to become official in Tanzania. The Employer of Record will act as a legal employer of your workforce in Tanzania and handle payroll and benefits administration, tax filing, and all the necessary paperwork for your employees, making the employment process in Tanzania smoother and quicker.
Spotlight on Tanzania:
Tanzania is a country in East Africa bordered by Kenya and Uganda to the north; Rwanda, Burundi, and the Democratic Republic of the Congo to the west; Zambia, Malawi, and Mozambique to the south; and the Indian Ocean to the east.
- Capital: Dodoma.
- Currency: Tanzanian shilling (TZS).
- Population: 61,741,120.
- Most developing industries: Tanzania has a vast natural resource wealth, with significant reserves of gold, diamond, iron, coal, nickel, tanzanite, uranium, tin, phosphates, gemstones, and natural gas. Tanzania’s main crops are tobacco, coffee, cashew nuts, tea, cloves, cotton and sisal plant. Due to its diverse climatic and geographic zones, Tanzania has one of the widest crop variety in Africa. Livestock production, especially cattle and sheep, is another important component of the primary sector.